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VALUE of SPANISH-AI3ERICA 

TO THE -'9^Sq yi' 



THE PROMOTION OF AMEKICAN COM- 
MEKCE; 

HOW TO MAKE THE MONKOE DOCTRINE 
EFFECTIVlj^ ; 

THE EXTINGUISHMENT OF THE NATIONAL 
DEBT IN A FEW YEARS, &e., &c. 



BY GKIN. CAIJLOS^ BUTTER FIl±iLr>. 



NEW YORK: 

MKTROPOl-lrAN Joi! PuiNltNG AND EnGBAVTN© ESTABLISHMENT, 9T NASSAlf St. 

186S 




/ / 



TO THE GOVERNMENT AND PEOPLE OF THE 
UNITED STATES AND TO THOSE OF SPANISH- 
AMERICA, THE FOLLOWING PAGES ARE RE- 
SPECTFULLY SUBMITTED : 

The political power of this country resides in the people. 
All questions, therefore, of general interest are here referred 
for decision to the "collective wisdom " of the nation. 

Whoever may seem to lead the public mind in any great 
movement is virtually an organ, and his thought an inspiration 
of the popular will. 

For nearly half a century the question discussed in the 
following pages has occupied the attention of our statesmen, 
and on several occasions has been gravely considered by the 
Government. Again and again postponed, it has recurred, 
and will continue to recur until the body of the people shall 
be aroused to the wisdom and necessity of finally disposing 
of it. 

Brought prominently to notice hy recent events, its impor- 
tance seems now to be more generally recognized. From the 
close of our late war to the present hour, thinking men have 
been seeking the best remedy for the acknowledged evil of 
European intervention in American afiaii-s, and for the 
deterioration of American commerce. The Spanish-American 
States, under the pressure of a more immediate interest and 
anxiety, are also enquirhig : " How shall we secure to 
ourselves the blessings of future peace, commercial prosperity 
and exemption from European interference ?" 

Now, theretbre, as if from a common sense of wrong and 
cf danger, and with a common purpose to complete the work 
of American independence continentally considered, the 
Brotherhood of Nations in the New World are earnestly 



2 

moving toward the settlement of the question upon principles 
of reciprocal advantage to the American Powers. 

The co-operative system of international relations between 
the independent States of America herein indicated, if fully 
carried out, will, it is confidently believed, prove a solution 
of the difficulty, and embrace other great and desirable results, 
as follows : 

I^irst — The security of the independent States of this 
Continent against European intrigue and intervenlion, and of 
the colonies here established against any change of dominion, 
except by transfer to some American Power or by the 
achievement of their independence. 

Second — A stable government in each of the Spanish- 
American States, and permanent peace among themselves 
and with all other nations. 

Third — The rapid development of t]ie vast resources of the 
Spanish-American States, and the diversion of their immense 
foreign trade, thus augmented, into the ports of the United 
States ; and, as one of the fruits of that profitable trade, the 
payment in a few years of our National debt. 

All this in the interest of peace, directly productive of 
the largest benefits to the people of the countries more 
immediately concerned ; and incidentally promoting the 
welfare of mankind throughout the world 

The facts adduced in support of the plan herein suggested 
are from the most trustwortliy sources, and the data whereon 
estimates of commercial results are founded, may, in the 
main, be verified by statistics compiled under the direction of 
the United States Government, or by the Balances Genemlcs 
of universal authority. 

The Spanish-American States comprise the richest portion ' 
of this Continent, and yet their native wealth, in the main, 
lies dormant, owing to revolutions, begun with their war for 
independence and continued, with brief intervals of peace, to 
the present time. Unfortunately the legacy left them by the 
despotism overthrown by their arms, was far different from 



that preparation for self-government with which we assumed 
a place among the nations. 

We had received from tradition, and practised in our 
local legislation, principles unknown to their colonial system. 
We had prescriptive "rights, and our obedience was due to 
laws of our own enactment, or binding equally the colonies 
and the mother country. 

The Spanish-American States enjoyed, at best, only privileges 
granted and withdrawn at the pleasure of the Crown, or 
of cornipt Viceroys, and creating monopohes in the hands of a 
few, oppressive to the mass of the people ; the obedience 
demanded of them being unquestioning submission to arbitrary 
authority. Hence, they had to learn by experience the 
self-control and practical statesmanship which were our 
birthright. Besides, they have always had in their midst 
factions representing the old monopolists and Court favorites, 
secretly exciting discontent, and ever ready to betray them 
for a price, as was done not long since in the case of Mexico. 

In the absence of security to person and property, they 
liave not only failed to derive from immigration and the 
natural increase of their popnlation the benefits which have 
so richly endowed us ; but the labor among them wanted 
incentive, while their capital lacked exemption from hazard 
— both matters indispensable for their most productive 
employment. Yet their populations have largely increased 
since they gained their independence. 

The people of those countries, taught by experience, and 
observing attentively the progress of the United States, have 
learned that the foundation of National prosperity must be 
laid in a stable government, changing its functionaries only 
by the will of the people, according to its organic law. 

Convinced that necessity demands they should secure them- 
selves against both domestic strife and foreign aggression, and 
thus be enabled to invite immigration, and develop those vast 
regions of' incalculable wealth lying within their domain, and 
confident of their ability, with the requisite moral influence, 
to maintain the governments they have established, and under 
them to reach a high degree of prosperity, they look to the 



United States, who, by a seasonable recognition, helped them 
to achieve their independence, for moral support to confirm it 
to their posterity. 

They confidently look to the friendly Power who, after 
acknowledging their National existence, once saved them from 
re-conquest, to avert any danger threatening them from the 
same quarter. 

They are our neighbors — members of the American family 
of nations — rand, as such, have our sympathy, and are entitled 
to our good offices. 

The revolutions that freed them from bondage were in- 
spired by our successful struggle, and the governments they 
framed, and are yet striving to uphold, were, many of them, 
modelled after our own. 

To extend to them proper encouragement, w^ould be 
to honor the example and give effect to the purpose of our 
fathers, whose tacit promise of continued friendship we should 
thus redeem, and at the same time gracefully discharge the 
obligation devolving on us as the leading nation on this 
Continent. Our duty in this respect becomes imperative, 
moreover, from the fact, that great benefits will accrue to us 
if we pursue the course herein indicated. 

There is, too, a political consideration of momentous 
importance which has, from time to time, formed matter of 
grave deliberation and concern with our government, and 
demands the earnest attention ot the people. It has long 
been a cherished purpose among the nations of Western 
Europe to divide and weaken the United States, whose great 
and growing power filled them with jealousy and alarm. 
Those of us who before doubted the fact have been convinced 
of it by the conduct of some of those Powers during our late 
civil war. Within the last few years we have seen an 
attempt, by armed intervention, to subvert the authority and 
control the internal affairs of a neighboring Republic, and 
on its ruins to erect a so-called Empire, essentiall}^ of 
European institution, and evidently to serve European aims. 

The plan concerted, and yet to be fully executed, it 
permitted by our Government, was, after the conquest of 



31exico and tlie consolidation of tlie new Empire, to take 
possession, one by one, of all the other independent Spanish- 
American States, and, under various pretexts and counterfeit 
tokens of popular consent, to parcel them out among the 
several parties to this European enterprise, the aim of which 
was nothing less than to obtain and wield the controlling 
power and influence — both political and commercial — of all 
America. The course pursued by Spain, after her withdrawal 
from the -Mexican adventure, was strongly indicative of the 
tacit understanding, as to that Power, with the covert design 
herein charged, she liaving declared war against others of the 
States, once her Colonies, upon more trivial grounds of 
difference than existed between her and Mexico. 

Such, is the condition of affairs, that the United States 
have either to become the keystone of the arch of Spanish- 
American independence, or eventually consent to the 
establishment upon our Continent of Monarchical governments 
against the will and despite the protest of the people. If we 
embrace the latter alternative, it will be a departure fi-om the 
policy we originated, and from which we have never deviated 
in our intercourse with other nations — namely, to recognize 
all governments emanating from the people, inquiring only as 
to the fact of their domestic origin. 

Now, as we are desirous of preserving amicable relations 
with the European Powers, the question arises, what should 
be our course towards the independent South and Central- 
American States, so as to encourage them in maintaining 
the governments we recognize. 

This desirable end may be attained, in accordance with the 
wish of the Spanish-American States, by an arrangement 
tending greatly to our security and aggrandizement, while at 
the same titae it is in strict conformity with our general 
foreign policy, and violates no principle of International Law. 

The suggestion about to be made is of no novel National 
policy, but simply a practical method of making eflScient, 
without war, that wise American policy discerned by some 
of the Fathers of the Republic with prophetic eye, and 
proclaimed by President Monroe, with the approval of the 



author of onr Declaration of Independence, as the position 
then assumed, and to be maintained for all future time, bj 
this countr}^ in reference to European interference in the 
internal affairs of independent States, and as to attempted 
transfers of colonial possessions on this Continent. 

The popular instinct, which is simplj that of self- 
preservation, now indorses tiiis theory of our Government 
with remarkable firmness and unanimity, our people being 
undecided onl)^ as to the means of carrying out the policy of 
non-intervention williout entangling the United States with 
any European Power. 

A majority of the Spanish- American States, if assured of 
the approval and moral support of their purpose on the 
part of our Government, are willing to form an alliance 
among themselves for mutual protection against both internal 
revolution and European aggression, stipulating that, in 
future, any difference or misunderstanding between any of the 
contracting parties shall be referred for settlement to an 
umpire to be chosen from among the American States. 
Meantime, upon the joint invitation of a majority of the 
Spanish- American States, presented to our Government by 
their representatives, a convention may be entered into of a 
different character, not involving domestic interference, but 
having for its object tlie enforcement of our continental 
poh'cy ; the United States engaging to recognize no 
government on tliis Cmtinent, the establishment of which 
shall be attempted by European intarvention— all the 
American Powers embraced in the convention agreeing 
to make common cause against any Power or cornbination 
of Powers actually undertaking the subversion or control of 
any independent American government now, or hereafter 
to be, established. All parties to this convention will engage 
to resist changes in the National dominion over any of the 
European colonies in America, unless it be by transfer to 
som(? American power, or tlirougli the achievement by such 
colonies of their independence. The Spanish-Americjm 
States, parties to tin's understanding, further agreeing that 
the United States shall have, over all luitions not domiciled 



in America, every advantage in trade and intercourse 
consistent with existing treaties. This wonld bind us only to 
maintain the position we have ah-eady, of our own motion, 
assumed. 

It is evident that such an arrangement would make a 
revolution impracticable in any of those Spanish American 
States ; for no ambitious leader would dare attempt to 
overthrow the legitimate government, if it could command 
the aid of one or more of the neighboring States. Hence, 
as a result of moral influence, without the exercise of physical 
force, those countries would settle down in a state of peace 
and prosperity. 

Through a liberal commercial system and inducements to 
immigration — such, for example, as already, much to her 
advantage, Brazil has inaugurated — their genial and varied 
climates and great natural resources would largely attract 
labor, capital and enterprise from abroad, to result in such 
and so rapid a development, as at an early day to produce 
unexampled prosperity and an immense foreign trade, the 
gi'eater share of which, with due encouragement from our 
Government and appropriate facilities for communication, 
would be enjoyed by the United States. The increase of our 
commerce, from this source, would defy all calculation. Nor 
would the political effect of tke proposed arrangement, once 
made and promulgated, be less important or less desirable. 
We would thereby restore and make permanent the peace 
of this hemisphere, and earn the gratitude of mankind by 
bringing to naught the effort to introduce a new element of 
discord, and beget a war of races, in countries designed by 
Providence for the reconciliation and common possession of all 
the races. Unless the counsels and aims of narrow interests 
shall prevail over the doctrine that the rights of the people 
are to be preferred to the privileges of any class assuming to 
govern without authority from the governed, America will be 
the peaceful home of all kindreds, creeds and tongues, who 
may, in their several communities, cultivate the arts, ameni- 
ties and intercourse of a high state of civilization, with honest 



8 

rivalry, but witliout dissensions because of difference in origin, 
in religion, or in their forms of government. 

Witli a view to tlie large benefits thence to arise, as well as 
the common danger to which we are exposed, a wise forecast, it 
would seem, should prompt all the independent American States 
to strengthen their position, and prepare the way for future 
prosperity, not only by harmonious action in a temporary 
emergency, but by drawing together in closer connection the 
remoter parts of all the countries concerned, through regular 
and frequent ocean mail steam communication and a net-work 
of railways and telegraph lines, which would insure both the 
rapid conveyance of intelligence and a profitable interchange 
of commodities. 

The natural result of the adoption of the proposed arrange- 
ment would be more advantageous to our people than is 
apparent to those who have not carefully estimated the pros- 
pective increase of our commercial and manufacturing inte- 
restsywhen stimulated and fed by the mobilized resources of 
an immense territory of surpassing fertility and inexhaustible 
mineral wealth, wherewith our present trade is as nothing in 
comparison with its capacity for augmentation. It would 
soon relieve the country from the burden of taxation and 
high prices, for it would enable the Government to pay off 
the National debt in a few years, leaving the country with the 
vast wealth of all America still flowing into its ports and 
enriching its Treasury'. 

And thus the important question of taxation enters promi- 
nently into the subject. Every addirion to the national 
wealth lightens the national burden. Every step toward the 
extension of our foreign trade is an advance toward the 
reduction of public indebtedness, and the consequent direct 
relief of every individual in the community from the pressure 
of onerous taxation, now so severely felt by all classes, xln 
influx of foreign products brings with it a corresponding 
revenue, while the stimulus given to trade in various 
directions, by increased imports, and the advantages afforded 
by new markets for our exports, cannot be over-estimated. 



9 

It would seem superfluous to discuss the importance to 
our shipping interest of a vahiable trade with Spanish-America* 
It is proposed to show, however, by the briefest possible 
estimate, founded upon oflicial statistics, the probable and 
almost certain growth of our foreign commerce, and conse- 
quent increase of revenue to flow from this arrangement, if 
made eifective in its commercial as well as its political 
aspect. 

The Spanish-American States have a population of 35 mil- 
lions, one-sixth greater than ours, in 1860, and an area 
of 7,500,000 square miles, two and a half times that of the 
United States before the acquisition of Alaska. The annual 
value of their imports is about $240,000,000 ; of their ex- 
ports something like $263,000,000 — a total foreign trade of 
about $503,000,000. The share of this five hundred millions 
of commerce now enjoyed by the United States is only 
about $114,000,000, although every article we produce or 
manufacture is consumed by those people, and we consume 
or could manufacture and return to them for their use. almost 
every commodity they export. It is a mooted question 
with some as to whether we can compete with European 
manufacturers in the production of certain classes of cotton 
and other fabrics which form an important item of the 
imports into Spanish-America. We think we can satisfy the 
most skeptical on that point, and demonstrate the fact that 
we are able, not only to compete with Europe, but, if the 
plan herein suggested be adopted, we can control that branch 
of trade with those countries in less than four years. Up to 
1860, Great Britain had nearly $83,000,000 more of this 
trade than we had. Her proportion of it is now much 
larger. The value of the imports into Chili in 1864, 
was, by official statistics, $18,867,363. Of this, England 
exported 43 per cent., France 20, the United States but 5 
per cent. Nearly $5,000,000 of these imports consisted of 
products and manufactures in which we excel the rest of the 
world, and yet we furnished but ten per cent, of them. In 
the South Pacific coasting trade, of which we should have a 
large share, it seems we participate to a very small extent, 



10 

and by sailing vessels only. The English have on that coast 
at the present time some thirty steamers tapping the com- 
merce of those vast and productive countries, at every point 
from Panama to Cape Horn, whereas the United States 
mercantile marine is not represented by one ! ! ! A similar 
humiliating state of affairs for us exists on the Atlantic Coast of 
Spanish-America. The English have steamers touching 
regularly at every available port on that coast, carrying off 
the precious metals and other rich products of those countries 
before our very eyes, which trade we might monopolize 
if we pursued the same commercial policy, and had the same 
governmental support that Great Britain extends to private 
enterprise in developing the commerce of the world for its 
own advantage. Official statistics inform us that, compared 
with 1860, our domestic exports for 1867 have fallen off 
nearly 39 millions of dollars, or over 10 per cent. During 
the same period the domestic exports of the United Kingdom 
have increased 237 millions of dollars, or 30 per cent., and 
those of France (proper), 226.2 millions, or over 43 per cent. 
Whatever have been the causes iliat have enabled Great 
Britain and France to oustrip us in their foreign commerce, 
it would seem that now no means should be neglected that 
will tend to at least restore our lost position. France has 
now double the amount of exports that we have ; the United 
Kingdom three times the amount ; and when it is remembered, 
not alone in its commercial, but in its social and political 
aspect, what an important agent international commerce has 
become in the diffusion of intelligence and capital, and in the 
consequent promotion of peace and happiness, the suggestion 
derives new force, and demands that it be regarded with more 
than passing attention. It may not be out of place to add 
here a brief statement of the past and present condition ol 
our mercantile tonnage. 

At the National Commercial Convention, held in Boston in 
February, 1868, the Hon. E. S. Tobey, of that city, chair- 
man of the Committee on Foreign and Domestic Commerce, 
made a report, on behalf of that Committee, from which we 
give extracts below. Mr. Tobey is a gentleman whose renown 



11 

for business enterprise is world-wide, and his efforts on behalf 
of American commerce have been as great as, if not greater 
than, those of any other American citizen. 

The committee and the convention at large were composed 
of gentlemen of eminent business capacity, drawni from all 
sections of the Union, whose interests are almost entirely 
bound up in the success -of our commerce, and who, probably, 
more than any other men in the country, were fully able to 
judge of the disastrous effects that had resulted to the nation 
in consequence of the deterioration of our commercial 
advantages.* 

The unanimous adoption of the report by this body of 
gentlemen is better corroboration of the position we have 
assumed than any statement of our own can possibly be. 
The report quotes from the ofKeial report of the Secretary of 
the Treasury of the United States as follows : 



* The following delegates composed the Committee on Foreign and Do- 
mestic Commerce: — Edward S. Tobey, Board of Trade, Boston; James 
MoMartin, Board of Trade, Albany; N. G. Highborn, Shipbuilders' Associ- 
ation, Augusta; William D. Sewall, Board of Trade, Bath. Avery Pltim- 
MER, Corn Exchange, Boston ; Israel T. Hatch, Board of Trade, Buffalo ; 
B. F. Culver, Board of Trade, Chicago; Robert Hosea, Chamber of Com- 
merce, Cincinnati; A Hughes, Board of Trade, Cleveland; George B. Dick- 
inson, Board of Trade, Detroit; John B. Green, Board of Trade, Louisville; 
M. B. Medbury, Chamber of Commerce, Milwaukie; S. D. Baboook, Cham- 
ber of Commerce, New York; John H. Boynton, Produce Exchange, New 
York; D. W. C. Brown, Board of Trade, Ogdensburg; D. G. Fort, Board of 
Trade, Oswego; George N. Tatham, Board of Trade, Philadelphia; Seneca E. 
Malone. Commercial Exchange, Philadelphia ; Felix R. Brunot, Board of 
Trade, Pittsburg; M. N. Rich, Board of Trade, Portland; John C. Osgood, 
Board of Trade, Salem ; N. M. Warne, Board of Trade, St. Louis ; M. W. 
Sandford, Union Merchants' Exchange, St. Louis ; Joseph A. Wheelock, 
Board of Trade, St. Paul ; John B. Carson, Board of Trade, Toledo ; James 
Forsyth, Board of Trade, Troy ; Franois Barry, Board of Trade, Wilming- 
ton. The Officers of this Convention were : E. W. Fox, Esq., of St. 
Louis, President, and the following named gentlemen Secretaries : Hamilton 
A. Hill, Boston ; John F. Beaty, Chicago ; Jason Parker, Buffalo ; 
Thomas Allman, Philadelphia; J. G. Sage, Cleveland; Edward Betts, 
Wilmington. 



12 

" SUMAliVRY OF TONNAGE ENTERING BKITISH POKTS. 

In 1859. In 1863. 

"British, 5,388,953 7,299,417 

"All foreign, 3,700,597 3,838,529 

" United States, 1,077,948 692,337 

" The increase of British is near 2,000,000 tons, while that of 
the United States declines 385,611 tons in five years. A still 
greater decline is apparent wlien the maximum year, 1861, is 
compared with 1863, the first giving a total of 1,647,076 tons, 
and the decline to 1863 being therefore 954,739 tons. This 
decline is undoubtedly due to the immense number of Ameri- 
can vessels sold abroad in 1861, 1862 and 1863, the great ma- 
jority of which were purchased by the British. 

" Thu8 the increase of steam-vessels, ich'ich is wholly foreign^ 
combines with the loss of the magmficent fleet of sailing shijJS, 
long the pride of the United States cornmerce, to exjjel the 
United States flag from the chief centres of foreign C07n~ 
incrce.'''' 

"Another striking illustration of the effect of steam com- 
merce on export trade," remarks Mr. Tobey, " may be found in 
the experience of England, in establishing a line of steamships 
from there to Brazil in 1851. In five years from that 
date the trade with that country increased three hundred per 
cent. Earl Grey is said to have remarked that swift letters 
bring back swift orders for manufactured goods." 

After remarking as to the injury inflicted on the ship- 
building portions of the country, in consequence of the lack 
of demand for vessels, Mr. Tobey continues : 

" The decline of our commerce is an admitted fact, and must 
be obvious to all. As to the means b}^ which it shall be 
restored, different opinions doubtless exist. Your Committee, 
however, assume that the legislation and policy of England, 
which, for nearly forty years, has been undeviatingly followed 
with great advantage, not only by liberal encouragement to 
steam commerce, but hy the remission of duties on all articles 
entering into the construction of her vessels of any class, and 
still further by allowing her vessels to be siipplied with tea, 
coffee, sugar, and, indeed, all articles required on shipboard, 
by being taken out of bonded warehouse, duty free, while at the 
same time exactly the opposite policy has been imrsued by the 



13 

Government of the United States, should furnish us with a 
clear precedent i?i this '^natter" 

According to official statistics, our merchant marine only 
amounts, at the present time, to 3,419,502 tons, whereas in 
1860 we had 5,353,868 tons, which shows a loss in eight 
years of about 1,900,000 tons. In that period England 
gained 5,000,000 tons — that is, her tonnage increased from 
4,000,000 to 9,000,000. 

The mercantile marine of France grew in that time from 
1,500,000 to 3,000,000 tons. This shows that the tonnage of 
England has more than doubled, and that of France about 
doubled, whereas that of the United States has declined more 
than one-third. It would therefore seem that the time has 
arrived when our Government, merchants, and capitalists 
should begin to ponder over these humiliating facts and do 
something for the restoration of our commercial interests, 
and particularly with our neighboring Republics. 

The Charleston M'ercury of October 31, 1868, contains the 
following notice of the arrival at that port of the British 
steamer " Golden Horn " : 

" At an early hour yesterday morning this splendid steamer 
crossed the Bar and steamed up to the city, presenting an 
imposing appearance. And well she might ; for no such 
vessel, as regards size and cost, has ever before come to our 
ancient city," etc., etc., etc. 

This is the pioneer steamer of a line to be established 
between England and Charleston, the object of which is to 
relieve American vessels from the carrying trade of that 
section of the United States. It would not surprise us to see 
lines of British steamers established with several, if not all, 
the principal ports of the South, thus completing the work, 
long since begun, of assuming control of our carrying trade. 
Meanwhile our own ships are idle. Unless measures for the 
protection and encouragement of our shipping interests be 
speedily adopted, we shall find our commerce controlled by 
England, as is that of Spanish-America, and our shipbuilders 
will b^ forced to abandon their vocation, Our ship-owners, 



14 

too, will have presented them the alternative of allowing 
their vessels to rot at the docks, or of placing them under the 
British flag. The law of England now oifers no impediment 
to the purchase by British merchants of foreign-built vessels, 
or to their navigation by crews of foreign birth. Two acts 
of Parliament passed during the reign of the present Queen 
liaving swept away the restraints upon commerce which are 
yet imposed by our laws, Great Britain is now in a position 
to command the labor and to employ the capital of the 
world. 

In striking contrast with the course pursued by our 
Government tow^ard our shipping interests has been the 
wise and liberal policy to which the country is indebted for 
the Union Pacific Railroad. This great national enterprise 
will be one of the most powerful agents in the fulfillment of 
our mission to ally the interests of the different countries of 
the whole American Continent as those of one great free 
commercial people. But to accomplish that great and 
end, we df es -i - i ^blc must imitate to a certain extent the policy 
of Great Britain, w^th a view to secure and control the 
commerce of those countries for ourselves. 

Great Britain has, as one of its commercial measures, 
special commissioners, or agents, constantly travelling in 
almost every part of the habitable globe, investigating 
and reporting on the present and probable future commercial 
resources of the countries they visit. This serves that 
Government as the initial point for its far-sighted commercial 
policy. For example : A commissioner from some part of 
the coast of Africa reports, that at a certain point, where 
little or no trade actually exists, a large trade might be 
created were the proper facilities for communication provided. 
The Government forthwith awards a subsidy of several 
hundred pounds sterling, for the establishment of a line of 
steamers to that point, and, within three or five years, it 
realizes from 20 to 30 per cent, from the investment of such 
subsidy. In view of the well-known advantages accruing to 
the commercial and financial interests of England from this 



15 

policy, it would seem to be wisdom on the part of the United 
States to adopt measures tending to the same result. 

With the completion of the Union Pacific Railroad, which 
will be within a year, and the consummation of the policy 
herein suggested, there would be established in a short time 
lines of steamers between San Francisco and the different 
South-American ports on the Pacific Coast, which would soon 
draw off the trade now enjoyed by Europe to our own ports. 
This would aflbrd the means of extending our natural 
protection to the weaker neighboring Republics, a measure 
tending not only to our commercial advantage, but also to the 
perpetuity of republican institutions throughout the Western 
Hemisphere. 

The late disruption of the Spanish monarchy, it must also 
be borne in mind, will necessarily have an infiuence on the 
future of Cuba. This question is one which, whether considered 
in its political or commercial bearing, eminent!}' deserves 
the gravest consideration of the Government and people of the 
United States. Whether that island is to be an independent 
Republic, or whether it is to join its fortunes with ours, 
is a problem as yet unsolved. It is plain, however, that, 
considering the vastness of our national interests involved in 
the proper solution of this important question, it behooves 
the American Government to take such prompt and decisive 
measures as shall secure to the United States all the benefits 
that may naturally accrue from intimate commercial relations 
with that country, let its status in the future be whatever it 
may. 

The foreign trade of England and France has been rapidly 
increased within the last eight years. From the reports of 
the British Board of Trade we learn that the foreign exports 
of Great Britain last year amounted to over six hundred 
milhons of dollars, which, though a falling off from the previous 
year, vastly exceeds ours. But, in addition to this amount, 
the exports to the colonies reached about a hundred and 
twenty millions. The foreign imports for the same period 
were over five hundred and thirtj^ millions, and the colonial 



16 

over a hundred millions. The foreign imports and exports of 
France approach those of England. The Paris Temps says 
that during the first half of the present year France has 
imported merchandise to the amount of 1,738,000,000 francs, 
or about three hundred and forty millions of dollars. This is 
at the rate of six hundred and eighty millions a year. 

Commenting upon these facts, the New York Herald very 
appropriately says : 

" The question arises, how is it that the United States, v^hich 
have a population larger than that of Great Britain, and nearly 
if not quite as large as that of France, and greater resources 
than both, are so far behind these countries in foreign 
commerce ? Why, the surplus of our cotton and gold crops 
which we export amounts to two or three hundred millions 
a year, to say nothing of tobacco, rice, wheat, corn and 
other productions. No country is so favorably situated for 
commerce with the rest of the world, and none has such 
resources or a more enterprising population ; yet we are far 
behind in the race. This should not be. There is something 
wrong, evidently, in our laws and in the manner in which 
Congress legislates with regard to commercial interests. 
Nothing should be left undone to promote the commerce of 
the country and to bring it up to that of Great Britain and 
France. This ought to be the first commercial nation on 
the globe, and doubtless will be at no distant day ; but that 
period may be deferred by bad legislation, and, in the 
meantime, we may lose much by neglecting this great 
interest and the opportunities we possess." 

These arguments apply with remarkable force to the trade 
which we ought to have, but, unfortunately, have not 
possessed ourselves of, with Spanish-America. 

One of the great articles of export from Spanish-America 
is specie and bullion, five-eighths of which now go into 
European coffers. There is no reason why seven-eighths 
of it should not come to the United States, and it certainly 
would if a wise commercial policy with those countries were 
pursued and governmental support extended to private 
enterprise, so as to make such policy effective. Undoubtedly, 
the most natural channel for the outflow of specie, as well 



1^ 

ai of all the other products of Spanish-America, is th^t which 
leads to the United States. 

The ability of the Spanish-American States to sustain a 
much larger foreign trade, is shown by the results already- 
attained in some of them ; for in natural resources they are 
all nearly equal. The foreign commerce of Cuba is 300 per 
cent, greater than ours, in proportion to pjpulation ; that of 
Chili 30 per cent, greater ; that of Brazil nearly equals our 
OM'n in the same ratio. 

The Government of Brazil, in the scope and liberality 
of its commercial system and the re-inforcement of all 
branches of internal trade and industry it has introduced 
and is laboring to perfect, through encouragement to 
immigrants, and the beginning of an extensive steam 
commercial marine, will soon have a largely increased foreign 
trade and a greatly enhanced prosperity, as is evident from 
the stimulus already imparted to private enterprise and the 
effect in growth of population and general business. 

Nothing but the want of tranquility, and the absence of 
the means of communication, prevent the trade of any of 
those countries from equaling per capita the present trade 
of Cuba, which last has by no means attained the maximum 
of its capacity. With proper facilities for intercourse, there 
is no reason why their commerce with the United States 
should not within ten years amount to $1,000,000,000 per 
annum. 

In 1850 United States' steamers commenced touchine: 
regularly at Havana. Our total trade with Cuba for that year 
was $15,282,625. For the year ending, June 30, 1858, to 
which it had grown gradually but rapidly through the preceding 
years, it was $41,648,037, an annual increase in eight years 
of over $26,000,000. (Butterfield's United States and Mexico, 
pp. 50, 51.) The value of her exports to the United States 
was, for that year, $27,214,846. In 1867 it had increased 
to $39,324,765 — her population being about 1,500,000, and 
her trade with the United States over $53,000,000. 



18 

The annual value of our commerce with all Spanish- 
America, increased in the same ratio, would be over 
$1,219,000,000. Of this sum, taking the exports of Cuba 
to this country as the basis of calculation, the annual 
value of their exports to the United States would be 
$598,000,000. 

The annual yield of the silver mines of Mexico might 
easily be made to exceed in value the gold product or 
California, its control secui'ed and its benefits enjoyed by 
the United States. The intercliange of trade between the 
United States and Mexico alone, increased in proportion to 
population, to what it now is witli Cuba, would be about 
$282,000,000 per annum. 

The receipts from Customs on $598,000,000, the estimated 
annual value of our imports from all of tlie Spanish- American 
States, after the establishment of the intercourse contemplated 
by this plan, taking for our basis the average rate of duty, 
about thirty-one per cent., would be $185,380,000. But 
suppose the duty be increased to forty per cent, as it probably 
will be, this trade would yield from Customs $239,200,000 
per annum. But allowing for undutiable goods, the odd 
$9,200,000, and much less would suffice, w^e find that, without 
increase of population, we would derive from this trade, 
in ten years, $2,300,000,000, or within $235,614,313 of the 
amount of our National Debt, according to the estimate on the 
1st of September, 1868— $2,535,614,313. Allowing four years, 
and less time would be needed, to perfect the working of the 
system, the debt could be discharged in sixteen years without 
considering the effect of each annual contribution in paying 
off maturing bonds. No small benefit would thence enure to 
the people, in lessening the interest to be met by internal 
revenue, for it would make practicable a gradual and rapid 
reduction of the direct tax. The Internal Eevenue will pay 
the interest on the debt. The duties on imports from other 
countries at the present rate ought to defray the current 
expensesof our Government. So that the duties on om* imports 
irom the Spanish-American States may be wholly applied 
toward the payment of the debt. 



19 

It may be objected to this argument that our trade with 
Cuba is exceptional — her exports to us largely exceeding ours to 
her. But any apparent unfairness in the estimate is not real. 
This country consumes an enormous quantity of the articles 
forming the greater part of our imports from that Island. We 
can never meet the demand by home production, our soils and 
climates not being adapted to the most valuable of those 
products. The increase ot our population and wealth would 
so augment the consumption of those commodities, already 
largely exported from some of the independent Spanish- 
American Republics, that though not maintaining the same 
ratio between exports and imports as now exists in our 
Cuban trade, which is surely undesirable, the ratio to their 
population of the value of the exports to us from all of the 
Spanish- American States would equal, if it did not far exceed, 
that of the exports of Cuba to us in proportion to its population, 
with this decided advantage to us, due to the arrangement 
herein suggested, that, instead of adjusting the balance of 
trade as with Cuba by the payment of specie, we should settle 
it by receiving specie, owing to the immense demand those 
countries would make upon us for our fabrics, machinery, &c. 
Cuba is of necessity the starting-point in our calculation, 
because it is the only one of the Spanish- American countries 
with which we have had for a sufficient period regular mail 
steam communication . 

But the estimate is far less than the probable actual 
result. The growth of population from natural increase, 
and from immigration, with every branch of industry thereby 
stimulated, would greatly augment the foreign commerce of 
those countries. 

Should the proposed Convention between the Spanish 
American States be concluded, it would be advisable, as has 
been suggested by some of them, to establish at Washington, 
under the auspices of the contracting powers, a bureau charged 
with the duty of collecting and preserving accurate information 
of all the countries embraced in the arrangement, and reporting 
thereon to the respective governments whenever directed so 



20 

to do, a full and detailed statement, showing the progress in 
industry, population, commerce and wealth due to the influence 
of the arrangement, and recommending such new features in 
its own system as experience may dictate. An arrangement 
of this character will do much toward opening the way for the 
establishment of lines of transport and frequent communication 
between this country and the Spanish- American States. These 
lines should, ot right, receive subsidies from the countries 
interested in, and to be benefitted by, their establishment, 
which subsidies might be graduated in accordance with the 
population of the respective States. 

The archives of this office would constitute a reservoir of 
valuable information, competent to supply the wants and 
guide the action of commercial men throughout the continent 
in all the international relations of trade. 

With a reliable record of the statistics of supply and demand 
in all of the different American markets, the merchant w^ould 
be at no loss in making up a cargo and choosing its destination, 
and purchasers would be furnished with the means of deciding 
where to procure, on the best terms, whatever commodities 
they might require. Capitalists, desirous of embarking in 
mining, manufacturing, or other enterprises, would here find 
the data requisite to enable them to determine judiciously the 
site of their operations ; while inventors, engineers, and other 
men of skill and ingenuity, would be directed to appropriate 
and remunerative fields of labor. It is believed that such a 
medium of intelh'gence woiild meet a want which has been 
long and seriously felt by commercial men, and that it would 
prove an invaluable aid and stimulus to profitable intercourse 
between the ports of the different countries. 

Enjoying the facilities for investigation which would be 
afforded its agents by the several governments under whose 
countenance and authority they would prosecute their inquiries, 
the Bureau would be incomparably superior to any private 
system which could be devised. Free, too, from any bias of 
personal interest, its testimony could be appealed to with 
absolute confidence in its truth. 



21 

To crown this plan with success, it would seem to be 
necessary that all the nations concerned should co-operate 
in the promotion of commercial intercourse. The benefit 
to accrue therefrom to the United States will of course 
be proportioned to their relative commercial importance. 
The peculiar merit of this measure is, that it is at once 
conservative and progressive ; being a middle course between 
two extremes. Eminently a peace measure, it w^ill at the same 
time fully vindicate our national honor, and result in great 
political and pecuniary advantage. 

This seems to be a favorable time for its adoption ; for it 
will meet the wishes of a large majority of our ovi^n people, 
receive the cordial support of the other independent 
po\ver8 on the American Continent, and will constitute an 
irreversible establishment of the '• Monroe Doctrine " as the 
law of nations for the western world. It is well known a 
similar plan, just forty years ago, had the approval of some of 
our wisest statesmen, who enjoyed in an eminent degree the 
confidence of the people. But " the fullness of time " had not 
come. The proposition had to encounter the strength of 
our Southern slave-holding interests then in the pride of 
their power, and exceedingly sensitive of the approach of any 
influence that would possibly afi'ect their social system. 
The grounds of their opposition, apart from technical 
objections, w^ere mainly that no occasion had arisen demanding 
an American Combination to meet a European Coalition, 
and that many of the Spanish-American States had, by 
constitutional provision, prohibited slavery and admitted as 
citizens people of African descent. 

Nevertheless, despite the magnitude of the interest thought 
to be endangered, and the great political influence exerted to 
uphold it in opposition to the measure, such was the popular 
sympathy with the views of the Government, then led by 
John Quincy Adams, President, and Mr. Clay, Secretary of 
State, with the support of Mr. Webster in the legislative branch, 
that the Senate confirmed the nomination, and the House 
of Bepresentatives appropriated the outfit and salaries of 



22 

ministers to the " Panama Congress," through popular 
pressure, against the weight of the personal influence of the 
great political leaders in Congress. And yet the " Slave 
Interest" prevailed, through the delays, in a large part due to 
the long discussion of the •' Panama Mission." The influence 
of the same interest thenceforward restrained our Government 
from cultivating the necessary commercial intercourse with 
the Spanish-American States, and virtually drove them with 
their profitable trade into closer relations wdth Europe. In 
corroboration of this last statement, we take the liberty ol 
quoting again from Mr. Tobey's able report. He says :- — 

" England now exports annually to Brazil thirty-two 
millions of dollars' worth of its products, against only ten 
millions imported from there, leaving a balance in favor of 
England of twenty-three millions. In 1859, exports from the 
United States to Brazil were six and a quarter millions oi 
dollars, nearly half of which was in flour, and our imports 
from there twenty-two and a half millions of dollars, leaving 
a balance to be met in our settlement of exchange, and paid 
for in England, in gold. The produ(;ts exported from the 
port of Boston to Brazil formerly amounted to a million of 
dollars, and it has now fallen to less than two hundred 
thousand dollars. We cite this tact, as one of many, to show' 
the intimate relations between commerce and the export of 
the products of the country. Does it not clearly show, that 
facility of transportation by steam largely stimulates the 
exports of a country to distant markets ? 

" It is this well-devised system of subsidized steam commerce, 
persistently pursued by England for nearly forty years, which 
has transferred the great bulk of transportation of valuable 
merchandise, of specie, flrst-class passengers and mails, from 
American vessels to a foreign flag ; for, previous to the war, 
not a successful line of American steamships toas running 
between the United States and England, and to-day the 
Arnerican flag is not borne across the Atlantic hy a single 
Arnerican-huilt steamshi/p. Our diplomatic agents and 
Government despatches must be conveyed under a foreign 
flao:. But while American steam commerce has thus been 
driven trom the Atlantic by our subsidized and otherwise 
favored rivals, England and France, it is an important and 
striking fact, that American-built sailing vessels, without 
Government aid in any form, were enabled to compete with 



23 

foreign sailing vessels in the carrying trade in every part of 
the world ; taking guano from the islands of the Pacitic to 
fertilize the soil ot England, and transporting the products of 
China and of India directly in successful competition with 
British sailing vessels into London docks," 

It is well known that the slave holding power in this 
country prevented the recognition by our Government of 
Hayti and Dominica, the former of which countries was 
excluded from our acquaintance for fifty years after the 
achievement of its independence, and the latter from the vear 
1824 until 1866. 

Some of the most powerful opponents of the Mission to 
Panama, and notably Mr. Benton, declared that if the occasion 
should ever come for a practical application of the Monroe 
doctrine, we should not only make common cause with the 
Spanish-American States, but take their lead, and oppose with 
the whole strength of the country the forcible intervention of 
a European power, or combination of powers, in the internal 
affairs of any of those States, viewing any attempt to control 
their destiny as necessarily endangering the peace and safety 
of the United States. 

The commercial class of our population, always the first to 
perceive the approach of any danger touching their interests, 
foresaw a recurrence of European combinations to reconquer 
Spanish-America and control its commerce, one such design 
while yet in embryo having been thwarted by the bold 
position taken by Mr. Monroe. 

Their fears have been verified most remarkably, not only 
by our own diminished trade with those countries, but 
by the political interference, lately defeated in Mexico ; 
the diminished trade, however, having preceded armed 
interference, inasmuch as the arts of diplomacy, taking 
advantage of our indifference, paved the way for the 
employment of force. 

The people of the United States will readily see the 
benefits to be derived from a plan the accomplishment of 
which will open this ample field for enterprise, and create a 



u 

new and ever-growing demand for the products of their geniuS 
and industry, at once bringing to them riches, of which no 
adequate conception can be formed, and reh'ef from the 
taxation now l)urdening every interest in the country. 

The people of the Spanish-American States will hail with 
delight the advent of peace. They will be incited to 
greater energy by the promise of comfort and luxury from 
the increased production of their lands and mines, and the 
wealth with its whole train of enjoyments," to flow in upon 
them from a rich foreign trade. They will more carefully 
practise frugality when every citizen shall be secure in the 
possession of the fruits of his labor, and will become more 
and more ambitious of accumulating wealth in proportion to 
the pride and pleasure awakened by the contemplation and 
experience of all the forms of an improved social life. 

They will learn that the means of comfort and enjoyment 
can be procured by exchanging with us their products for 
our manufactures, without the impoverishing effects of their 
present system of paying for their imports in large part 
with the precious metals, leaving but little in the form of 
currency and capital to stimulate industry, and provide 
improved facilities for internal trade. Then they will keep 
at home much of their silver and gold, converting it into 
fixed capital and a circulating medium, which will infuse 
new life into every branch of business, and enable them to 
cover their broad territory with railways and telegraphs, and 
to build up a permanent prosperity in a lucrative, domestic 
and foreign trade, both to their own and our advantage. 

The Governments of those countries would reap the first 
fruitB of the benefits of an alliance between themselves, and 
a more intimate relationship with the United States, in a 
ready sale of their bonds. An assurance of peace at home 
would be, to them, an assurance of credit abroad, for peace 
would be a guarantee of prosperity. Such is the fame of the 
native opulence of those regions that the promise of a tranquil 
future, consecrated to labor under the guardianship of law, 
would immediately attract attention to their public securities, 



25 

atid create a new demahct for surplus capital. The proceeds 
of these loans, employed, as they would be, in stimulating 
improvements through aid afforded to various private 
enterprises, would call into exietence other securities inviting 
further investment. 

The impetus which would be given to mining, under the 
influence of greatly augmented means and the employment 
of scientific and skilled labor and improved machinery, where 
the material is perhaps richer and more abundant than in any 
other quarter of the globe, and where the precious metals 
are in such purity, as not to require expensive processes to 
eliminate them from their ores, should, of itself, in the 
certainty and value of its results, be a sufficient inducement 
to enlist in behalf of this arrangement the earnest efforts of 
all the leading men throughout the American Continent. 

The natural products of forests, unparalleled in wealth of 
raw material for the arts both of useful and elegant life — 
including particularly inexhaustible supplies of ship timber, 
drugs, dye woods, mahogany, India rubber, etc., — would 
present a field for industry and trade scarcely less inviting 
than the mines. These forests would furnish a congenial 
pursuit for a large and enterprising class of people in the 
United States and in Europe, who, possessed of both means 
and energy, would bring- to their new homes an element of 
wealth highly desirable in the view of statesmen and patriots, 
looking to the establishment of their country's prosperity as 
much in the character and productive power of immigrants 
as in their immediate contributions to capital. The trafiic 
arising from the working of both mines and forests 
would greatly swell the volume of the foreign commerce of 
all those countries. These are simply among the prominent 
sources of wealth which would be largely and most favorably 
affected by this system of Internationa,! co-operation. 

The policy herein advocated, as auxiliary to the general 
American policy is submitted to the people with greater 
confidence from its entire conformity with the firm and 
dignified, yet moderate and pacific course hitherto pursued 



26 



LIBRARY OF CONGRESS 

015 995 555 2 



bj the Government in the conduct of our foreign relations. 
It is presented with the hope that it may aid in the peaceful 
solution of the political problem now to be worked out and 
settled, as a decree to be observed in future by all nations, 
and with entire faith in its ability, if fully established, to 
l)estow much larger benefits upon the United States, and the 
other countries embraced in the arrangement, than they have 
realized from the commercial treaties now regulating the 
trade of this continent with all the world. 

Apart, however, from material results, it is a matter afiecting 
our pride and dignity as a nation, and within the province of 
our mission, to insure the peaceful triumph of our principles, 
and, against the assumed prerogative and authority of any 
European association of monarchs to govern either with or 
w^ithout the consent of the people, to prove our ability to uphold, 
by diplomacy, as we have done by arms, the supremacy of the 
rights of man, whose defenders, the w^orld over, have caught 
from us their inspiration, and could not long maintain their 
ground were they not cheered by our success and shielded by 
our power. 



